To: jjs_ynot who wrote (2307 ) 11/13/1998 1:30:00 PM From: Chuzzlewit Respond to
Dave, I think you are wrong. I've been in this stock for about a year and a half, and nobody talks about several hundred percent revenue growth per year. The company has executed flawlessly. The major issue, as far as I am concerned, is what is the limit to growth. At some point Dell will become big enough so that its growth cannot exceed that of the computer market. I think Michael Dell indicated that that point is around 20 to 25% of the market share, which he feels is obtainable in about 5 years. This implies growth of around 45% assuming that the market itself grows at 17% per annum, and that Dell has a current 8% market share. Michael Dell, in an interview this morning said that he expected 50% growth. But you should be aware that Michael Dell has consistently underestimated growth going forward. Therefore, I wouldn't be a bit surprised to see growth in the 55% range.
